"Al Mazaya Holding" losses rise 3.3% in 2020 due to "Corona"

The financial statements of Al Mazaya Holding Company, listed on the Kuwait and Dubai Stock Exchanges, showed a slight increase in the company's losses during the past year, by an estimated 3.3% on an annual basis.

According to the company's results for the Kuwaiti Stock Exchange, today, Monday, losses last year amounted to 8.48 million dinars, compared to the losses in 2019 of 8.77 million dinars.

The company said in a statement to the Stock Exchange that the high losses during the comparative years are mainly due to the repercussions of the current conditions resulting from the outbreak of the Corona pandemic, which negatively affected the group and its business; This resulted in a decrease in the value of investment properties, real estate for trading, financial assets and debit balances, and the company's share of the results of the associate's business, in addition to discounts and rent exemptions for the group's real estate tenants.

The company recorded losses of 3.21 million dinars in the fourth quarter of last year, compared to losses of 4.86 million dinars for the same period in 2019, with a decrease in losses by 34% .

and the company's board of directors recommended, in its meeting held yesterday, Sunday, to extinguish all accumulated losses in the amount of 3.73 million dinars, or 5.42% of the company's capital as per 2020 data, By reducing a portion of the compulsory reserve after presenting the matter, the company’s general assembly, for discussion and decision in its regard.

The Board of Directors also recommended canceling the entire balance of direct treasury shares, local shares and shares whose ownership will be transferred from a subsidiary, after the approval of the Kuwait Capital Markets Authority and all relevant regulatory authorities The link, which is approximately 58.72 million shares, and its cost is about 18.63 million dinars.

Based on the above, the Mazaya Board of Directors recommended reducing the parent company's capital from 68.83 million dinars to 62.96 million dinars, after obtaining the approval of the Capital Markets Authority and all parties The relevant regulatory authorities, then call for an extraordinary general assembly to discuss the recommendations of the Board of Directors.

The company clarified that if the relevant regulatory authorities approve and the company’s generality approves the recommendations of the Board of Directors mentioned above, the amortization of accumulated losses, cancellation of treasury shares and reduction of capital will not be his An impact on property rights and the financial position of the benefits, and it does not result in any change in the value of shareholders' equity or the number of their shares.